HSBC (HSBC) and other UK bank executives met with UK chancellor John Healey, who told the lenders he is facing a "challenging" fiscal picture but did not indicate whether higher taxes would be imposed on banks, the Financial Times reported Tuesday, citing sources familiar with the talks.

Other banks represented in the meeting were Banco Santander (SAN), Barclays (BCS), Lloyds (LYG), NatWest Group (NWG), and Nationwide, according to the report.

The bank executives argued against higher taxes, saying these would raise the cost of capital and reduce lending, and would be "self-defeating" for the government's growth plans, the report said.

The banks and the UK Treasury did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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